Rising Use of GenAI Apps Drives Expectations on 5G Performance in India: Ericsson

• 28 Nov 2024
• TM Team
• 0 Comments

According to a new Ericsson ConsumerLab report, Generative AI applications are emerging as a key area driving expectations on 5G performance and in turn interest in differentiated connectivity, guaranteed uninterrupted responsive connectivity when you need it most, among 5G smartphone users in India.

With the number of smartphone owners who use GenAI apps expected to increase in the next five years, the rapidly growing category joins existing use cases such as video calling, streaming and online payments that smartphone users say they are willing to pay a premium for guaranteed performance. 67 percent of 5G smartphone users in India are expected to use Gen AI apps weekly within the next five years.

The findings highlight a rising demand for reliable connectivity in India, with share of users reporting high satisfaction with 5G connectivity doubling in Tier 3 cities compared to last year, reflecting growing digital inclusivity.

Differentiated connectivity and consumers' willingness to pay communications service providers (CSPs) for the guaranteed higher performance for essential apps, is the subject of the latest global report from Ericsson ConsumerLab, called 'Elevating 5G with Differentiated Connectivity'.

The report highlights that 5G deployment in India is likely to shift focus from availability to enhancing experience at key locations such as stadiums, public transportation hubs, airports and commuting routes. One in six 5G users are willing to pay 20 percent of their current monthly mobile spend for assured connectivity at event venues.

The report also highlights that AI features are becoming a top priority for Indian smartphone buyers, outranking traditional factors like camera quality, screen size and storage capacity. India also has twice as many engaged early adopters of AI on smartphones compared to global averages. This shift underscores the growing importance of AI capabilities in shaping the smartphone experience, driving demand for higher performance from both devices and networks.

Jasmeet Sethi, Head of ConsumerLab, Ericsson, said, "The latest comprehensive Ericsson ConsumerLab research indicates that as AI-powered applications become more prevalent, users' expectations for enhanced 5G connectivity are rising. Young Gen AI users are already expressing a strong demand for more responsive AI experiences on 5G networks. This signals an opportunity for CSPs to meet this demand through tailored connectivity experiences."

CSPs can expose Quality on Demand (QoD) network APIs to developers and can thereby tap into the consumer demand for high performance apps. They can thus enable developers to offer premium, high-performance experiences and unlock new revenue streams in the process."

Key research takeaways:

- Willingness to Pay: One in six 5G users willing to pay 20 percent of current monthly mobile spend for assured connectivity at event venues. Hence, 5G networks would need to adapt instantly to the rapidly shifting traffic patterns during events to keep up with this consumer demand.

- Generative AI app performance. 21 percent of Indian Gen AI users today use more than four different Gen AI apps on smartphone, compared to just 8 percent in the U.S.

- A third of Indian smartphone users consider AI-powered features more important than camera quality for their next 5G phone.

- Accelerated consumer uptake of GenAI will cause a steady increase of mobile traffic in addition to the baseline increase. GenAI consumer uptake could see a strong growth, possibly aligned with the launch of AR glasses in the future.

More than 23,000 smartphone users between the ages of 15 and 69 were surveyed online for the research, more than 17,000 of which were 5G smartphone users from 16 key markets including India. Ericsson researchers say the survey is representative of 300 million urban Indian smartphone users, including 180 million 5G users in India.

Surveyed 5G users came from: Australia, Brazil, Canada, Mainland China, France, Hong Kong, India, KSA, Singapore, South Korea, Spain, Taiwan, Thailand, UAE, United Kingdom and the United States.